10 Best Very Cheap Stocks to Buy According to Billionaires

2) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Forward P/E as of March 28: ~18.7x

Number of Billionaire Investors: 30

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is engaged in manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices. Bernstein analysts remain optimistic about the company, considering its strong positioning in the semiconductor industry, mainly in the data-center AI sector, which is expected to be a significant growth driver through 2025. As per Bernstein, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is well-placed to benefit from the expanding demand for high-bandwidth memory (HBM), which can tighten the capacity for mainstream memory production. Bernstein analysts continue to forecast a positive shift around the middle of the year, stemming from healthy AI and HBM demand.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s dominant position in the broader semiconductor industry is mainly because of its technological leadership. It continues to be at the forefront of developing and implementing advanced manufacturing processes, enabling it to maintain a competitive edge. Its focus on R&D allowed it to stay ahead of the curve when it came to process technology. This advantage remains important in attracting and retaining high-profile customers in the broader tech industry, which includes well-established smartphone manufacturers and AI chip designers.

Nightview Capital, an investment management company that concentrates exclusively on publicly traded equity strategies, published the Q4 2024 investor letter. Here is what the fund said:

“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.

These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Core Opportunity: TSMC, the world’s largest dedicated chip foundry, holds an impressive 67% share of the global foundry market. Its dominance is even more pronounced at the cutting edge of semiconductor technology, where it plays a critical and unparalleled role. Their lead has only been strengthened recently and they have begun to take advantage of their pricing power.

Competitive Advantage: Revenue Growth: TSMC posted 34% YoY revenue growth in November 2024 to $8.55 billion, with robust demand across AI, high-performance computing, and 5G technologies.…” (Click here to read the full text)